Bridget Bennett/Bloomberg via Getty Images
The Key Takeaways
- The S&P 500 plunged 1.5% on Friday, Jan. 10, as an unexpected surge in hiring in the December jobs report raised concerns about interest rate policy.
- Constellation Brands’ shares dropped after the company reduced its guidance for full-year sales.
- Strong results from Walgreens Boots Alliance suggested early progress on the drugstore operator's turnaround plan, and its shares surged.
As the market returned to activity Friday, after a mourning day for Jimmy Carter’s former presidency, major U.S. stock indexes plummeted.
Stocks fell on the day after the U.S. added more than 256,000 new jobs in December. This was well above the forecasts of the economists. This hotter than expected labor market data has increased the uncertainty surrounding Federal Reserve’s ability to reduce interest rates in 2025.
The S&P 500 slid 1.5% on the final day of the trading week. The Dow and the Nasdaq both ended Friday's session down 1.6%.
Constellation Brands (STZ) shares dropped 17.1%, losing the most of any S&P 500 stock after the beer, wine, and spirits maker reported lower-than-expected quarterly sales and slashed its annual forecast. Owner of Corona and Modelo brands, the owner noted that rising inflation was impacting alcoholic beverage spending. Shifting preferences towards lower-calorie drinks also impacted demand.
Shares of electric utility PG&E (PCG) fell 10.8% as devastating wildfires continue to rage in Southern California. While PG&E is headquartered in Oakland and primarily serves northern and central parts of the state, the power generator declared Chapter 11 bankruptcy in 2019 after being hit with billions of dollars in legal damages related to past fire outbreaks. Edison International shares (EIX), the company that has cut off electricity to customers in the Los Angeles area around the path the fire is on, have continued their steep declines this week with a 6.5% drop.
Truist has downgraded the shares of ON Semiconductor, a maker of sensor and power chips. “hold” You can also find out more about us on our website. “buy” The stock’s price was lowered by the company. Onsemi’s management believes that the company will recover in terms of revenue and margins once it has recovered from its recent weakness. Analysts at Truist, despite a recent drop in the price of Onsemi, are cautious about their outlook. Onsemi stock fell 7.5%.
Shares of Walgreens Boots Alliance (WBA) skyrocketed 27.6%, notching the top performance in the S&P 500 on Friday. After the company reported sales and profits that were better than expected for the fiscal first quarter, the stock price surged. It is also confident that it has made progress in implementing its plan to close 1,200 low-performing stores.
Constellation Energy shares (CEG) jumped 25.2% when the Maryland utility announced its agreement to buy private energy firm Calpine. Constellation Energy will gain a larger footprint in California, Texas and the Northeast by acquiring Calpine’s renewable and natural gas portfolio. According to the company, the combined entity is expected to become the U.S.’s largest provider of clean energy.
Delta Air Lines shares (DAL) rose 9% on the news that their first-quarter earnings guidance was better than consensus estimates. Delta CEO said 2025 might be its best-ever year. United Airlines (UAL) shares moved 3.3% higher.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
